American Express Cobalt Card: Monthly cap for the 5X category

Since August 15, 2023, American Express has applied a monthly cap of $2,500 for earning points in the 5-times points category of the American Express Cobalt^® Card. This is the “Eats & Drinks” category and includes:

• Grocery stores (and convenience stores like Couche-Tard/Circle K)
• Restaurants
• Bars
• Food delivery services (like Uber Eats)

This means that the $30,000 annual purchase limit for these categories of purchases will still be in place. But the change is that this ceiling is now distributed on a monthly basis.

Starting at $2,501 of spending per month in this high category, the accumulation rate lowers to 1 point per dollar spent.

Please note: This news was first announced on May 1, 2023, and has been in effect since August 15, 2023.

There are no other changes for other accumulation levels such as transportation purchases (2X points) and streaming services (3X points).

The value of this wonderful credit card remains the same.

If a American Express Cobalt^® Cardmember exceeds this future ceiling every month, you’ll have to be strategic! For example, many use the gift card trick, so you will need to plan your monthly purchases accordingly.

Two people from the same household could alternate between two American Express Cobalt^® Cards to maintain high earning power.

This doesn’t change the fact that American Express Cobalt^® Card remains, in our opinion, one of the best credit cards to have in your wallet, if only for the flexibility of using Membership Rewards points and the possibility of transferring to other hotel and airline programs, for example!

This change is reminiscent of the National Bank World Elite Mastercard^®.

Since September 2022, the first $2,500 in gross monthly purchases (for all types of purchases) charged to the account also earns 5 points per dollar on grocery and restaurant spending. Then, at $2,501 in monthly purchases, the rate switches to 2 points per dollar of purchase on this high accumulation type.

Depending on your objectives and spending, another strategy would be to alternate between the American Express Cobalt^® Card and the National Bank World Elite Mastercard^®.